EUR favouring downside - Scotiabank

“Today’s weak German IFO, coming in below expectations and the June data, warns of fading confidence; however it is next week’s flash CPI, expected to be stable at 0.5% on headline and 0.8% on core, which is critical to evaluating the path of ECB policy and EUR. We hold a Q314 target of 1.34 and a year-end target of 1.30; expecting EUR to leak slowly lower from here."

"EUR/USD short‐term technicals: bearish—technical studies are all bearish EUR, warning of a test lower still. 1.3400 is an important technical level and we would expect support to hold only temporarily there."